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IPG Photonics (IPGP) to Post Q1 Earnings: What to Expect?

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IPG Photonics (IPGP - Free Report) is slated to release first-quarter fiscal 2022 results on May 3.

For the first quarter, IPG Photonics anticipates sales to be $320-$350 million. Earnings are projected between 85 cents per share and $1.15 per share.

For the quarter under review, the Zacks Consensus Estimate for earnings is pegged at 99 cents per share, unchanged over the past 30 days. The figure indicates a decline of 15.38% from the year-ago quarter.

The consensus mark for revenues stands at $333.49 million, which suggests a decrease of 3.50% from the year-ago quarter.

IPG Photonics’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 2.82%.

IPG Photonics Corporation Price and EPS Surprise

IPG Photonics Corporation Price and EPS Surprise

IPG Photonics Corporation price-eps-surprise | IPG Photonics Corporation Quote

Factors to Note

IPG Photonics’ first-quarter performance is likely to have benefited from the global macro trends such factory automation, miniaturization, renewable energy and energy efficiency and EV.

Automakers and suppliers have been investing heavily in e-mobility vehicles globally. Rising demand for its AMB lasers and foil cutting applications used in EV battery manufacturing might have favored IPGP’s performance.

Strict emission targets are expected to drive investments in solar cell production in North America resulting in higher demand for green lasers. As a result, IPG’s top line is likely to reflect benefits from strong demand for its green lasers in the solar cell market.

The development of new medical applications utilizing fiber lasers for urological and dental procedures is anticipated to have driven the adoption of laser-based medical solutions. This, in turn, might have contributed to the first-quarter performance.

However, weakness in the China market on account of soft demand in cutting applications and uncertainty due to supply chain issues may have weighed on the top line.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Although IPG Photonics has an Earnings ESP of +6.06%, it carries a Zacks Rank #5 (Strong Sell) currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

BWX Technologies (BWXT - Free Report) has an Earnings ESP of +2.29% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

BWX shares have returned 9.2% in the year-to-date period against the Zacks Computer and Technology sector’s decline of 23.2%.

Fabrinet (FN - Free Report) has an Earnings ESP of +0.87% and a Zacks Rank of 2.

Fabrinet shares have fallen 16.2% in the year-to-date period.

Analog Devices (ADI - Free Report) has an Earnings ESP of +2.17% and a Zacks Rank #2.

ADI shares have decreased 13.6% in the year-to-date period.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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